Property Tax Credits and Exemptions

Iowa Homestead Credit

Description: Originally adopted to encourage home ownership through property tax relief. The current credit is equal to the actual tax levy on the first $4,850 of actual value.

Eligibility: Must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible.

Filing Requirements: Claim must be filed on or before July 1. Claim is allowed for successive years without further filing as long as eligible. Homestead Application

Iowa Military Exemption

Description: Reduces the taxable value of property for military veterans.

Eligibility: The amount of exemption varies. Must own the property on July 1 of each claim year. To qualify you must have a DD-214 Discharge and Separation Form recorded with the Des Moines County Recorder's Office

Filing Requirements: A qualified veteran must file a claim with the local assessor by July 1. Subsequent claims need not be filed on the same property. Iowa Military Exemption

Iowa Business Property Credit

Description: Recently, several property tax reforms were signed into law. One change is the Business Property Tax Credit. This new tax credit will be available for most commercial, industrial and railway property owners.

Eligibility: Parcels classified and taxed as commercial property, industrial property, or railway property under Chapter 434Iowa Code are eligible for a credit.

The following are NOT eligible for the credit: Section 42 properties, Apartments, Assisted Living Facilities, Mobile Home Parks, Manufactured Home Communities or Land-Leased Communities.

Filing Requirements: Owners of eligible business property can apply for the credit. The application must be filled by a "Person" which under Iowa law is defined as an Individual, Corporation, Limited Liability Company, Government, Government Subdivision or Agency, Business Trust, Estate, Trust, Partnership or Association, or any other legal entity. Completed application forms will be filed with the Assessor's Office. Click here for the Iowa Business Property Tax Credit Application

Iowa Disabled Veteran Homestead Credit

Veterans with 100% service-related disability status qualify for this credit. Veterans also qualify who have a permanent and total disability rating based on individual un-employability paid at the 100% disability rate. The veteran must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible. A surviving spouse of a disabled veteran receiving DIC payments also qualifies. The surviving spouse as a beneficiary of the estate of a veteran who received the credit may continue to receive the credit as long as the spouse resides in the qualified homestead and does not remarry. Claim must be filed on or before July 1. A current Benefits Paid letter and a 00214 must be included with your application. (Refer to Code of Iowa, Chapter 425.15)

Filing Requirements:Claim must be filed on or before July 1. Claim is allowed for successive years without further filing as long as eligible.Disabled Veteran Credit Form

Iowa Ag Land Credit

Description: This credit was established to partially offset the school tax burden borne by agricultural real estate. Current law allows a credit for any general school fund tax in excess of $5.40 per $1,000 of assessed value.

Eligibility: All land used for agricultural or horticultural purposes in tracts of 10 acres or more and land of less than 10 acres if contiguous to qualifying land of 10 acres or more.

Filing Requirements: Land owners are not required to file a claim. The county auditor determines the amount of credit applicable to each tract of land.

Iowa Family Farm Land Credit

Description: Credit established to partially offset the school tax burden borne by agricultural real estate. Current law allows a credit for any general school fund tax in excess of $5.40 per $1,000 of assessed value.

Eligibility: All land used for agricultural or horticultural purposes in tracts of 10 acres or more and land of less than 10 acres if contiguous to qualifying land of more than 10 acres. The owner or designated person must be actively engaged in farming the land.

Filing Requirements: Claims must be filed with the assessor by November 1. Subsequent claims are not required if ownership and designated person actively engaged in farming remain the same.Family Farm Land Credit Application

Iowa Barn and One-Room School House Property Exemption

Description: Exempts from taxation the increase in assessed value from improvements made to barns constructed prior to 1937 and one-room school houses.

Filing Requirements: Application must be filed with assessing authority by February 1 of the first year the exemption is requested.

Eligibility: The exemption for a barn continues as long as the structure is used for the storage of farm products or feed or for the housing of farm animals or farm equipment.

Iowa Forest & Fruit Tree Reservations Exemption

Description: Provides an exemption for property established as a forest or fruit tree reservation.

Eligibility: Forest Reserve: Minimum of two acres, with not less than 200 trees per acre. Fruit Tree Reserve: Not less than one nor more than 10 acres, with at least 40 apple trees or 70 other fruit trees.

Exemption: 8 years for fruit tree reservations. Neither reserve can be used for economic gain other than raising trees, nor is livestock permitted on the reservation. Must meet the criteria established by the Iowa Department of Natural Resources.

Filing Requirements: Application must be filed with assessor by February 1.

Iowa Geothermal Exemption

Description: 10 year exemption applies to value added by any new or refitted construction or installation of a geothermal heating or cooling system, on or after July 1, 2012, on property classified as residential.

Eligibility: Residential class property with Geothermal installed on or after July 1, 2012.

Description: Exemption for certain property other than land and buildings that is purchased by a data center business. This includes computers and equipment that are necessary for the maintenance and operation of a data center business.

Eligibility: The data center business must meet the requirements contained in Iowa Code section 423.3 subsection 95. Filing Requirements: The owner must file an application with the assessor by February 1 of the first year the exemption is claimed. Iowa Data Center Application

Iowa Low-Rent Housing Exemption

Description: Provides an exemption for low-rent housing until the original housing development mortgage is paid in full or expires. Eligibility: Property owned and operated or controlled by a nonprofit organization providing low-rent housing for persons at least 62 years old or persons with physical or mental disabilities.

Filing Requirements: Must file an application with the assessor no later than February 1. The claim is allowed on the property for successive years without further filing as long as the property is used for purposes specified in the original claim. Non-Profit and Charitable Application

Iowa Impoundment Structures Exemption

Description: Provides an exemption for impoundment structures and land underlying an impoundment located outside any incorporated city.

Eligibility: Not developed or used for nonagricultural income-producing purposes. Must be approved by Soil and Water Conservation District commissioners and the Iowa Department of Natural Resources.

Iowa Methane Gas Conversion Property Exemption

Description: Promotes environmental purposes.

Eligibility: Property must be used in connection or conjunction with a publicly-owned sanitary landfill, or is property originally placed in service on or after January 1, 2008, or before December 31, 2012.

Iowa Web Search Portal Exemption

Description: Exemption for certain property that is purchased by a Web search portal business. This includes cooling systems, cooling towers, and other temperature control infrastructure; all power infrastructure for transformation, distribution or management of electricity used for the maintenance and operation of the Web search portal, including but not limited to exterior dedicated business-owned substations; back-up power generation systems, battery systems, and related infrastructure; and racking systems, cabling, and trays, which are necessary for the maintenance and operation of the Web search portal.